France: CAC 40 Sheds 1%

The CAC 40 fell 1% to close at 7,769 on Thursday as persistent geopolitical instability and hawkish central bank rhetoric deepened a retreat from recent peaks. Market sentiment soured following Iran’s rejection of a 15-point US peace proposal and its refusal to negotiate while the US deployed additional troops to the Middle East. These tensions exacerbated domestic economic concerns as French industry and consumer confidence slipped in March alongside rising household inflation expectations. Financials faced heavy selling pressure with BNP Paribas sliding 2.9% and Societe Generale dropping 2.8% while Credit Agricole lost 2.4%. Luxury and industrial leaders also weighed on the index as Schneider Electric slumped 3.9% and Hermes International fell 1.7%. In contrast TotalEnergies bucked the trend to gain 2.9% as elevated oil prices supported energy producers while Sanofi added 1.4%. Persistent warnings from the ECB regarding rate hikes continue to cloud the market.